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In 2019, these three 'E' will decide the direction of the market, what should you do

Know what these three 'e' are who will decide the market trend and what you should do in this situation.


Market leaders say investors should avoid cheating in the current bull market, because the market has more importance than eye sight.
Market veterans say that three 'E' are going to decide the direction of the market. These are three E-Elections, Economy and Earnings (Earnings). In such a situation, investors should bet on those stocks which are fundamentally strong, rather than those who are in the bull run in the market.

Recently, major indices have achieved peak level. Due to the rising foreign investment and expectations of Prime Minister Narendra Modi's return, the BSE Sensex and the Nifty have set a new record of 50 index height. From the lower level of February, these indices have seen an uptick of 10%.

After February 1, foreign investors have invested an average of Rs 1,300 crore per day in the Indian stock market. A large part of this money has been made in largecap stocks. In the past two months, the mid-caps and small-capped shares have also made a great comeback. Market veterans believe that this is a completely electoral growth, which is largely influenced by the increased liquidity of the market. There is no direct connection to the different sectors of this market. However, any major variance in electoral results could affect the direction and direction of the market.

Siddharth Sedani, Vice President of Equity and Portfolio Advisory at Anand Rathi Financial Services said, "The market is keen on the fourth quarter results and elections, though there is an opportunity to invest in select stocks. Are. " Over the last few seasons, macroeconomic concerns are dominating the market. Crude oil prices are on the rise and rupee weakness continues. Brent crude prices have risen sharply after the US announced a complete ban on Iran. This will increase the burden of imports, which can spoil the health of the rupee.

From 1 January 2018 to 19 February 2019, indices of BSE sector declined 41 percent. After this, all sectors have traded in green mark. BSE Realty, Consumer Durable, Spinach, Metal, Oil & Gas, Bankex and Capital Goods Index have given returns of over 10 per cent.

Healthcare, auto, IT, FMCG, tech and telecom indices in other sectors have also strengthened 3 to 9 per cent. Last year, these indexes were badly beaten. Realty index and telecom index took investors the most disappointment

Suggesting investment in select stocks, Mehta has advised investors to play bets on capital goods, private financial and banking shares. He believes that HDFC Bank can do well. They have expectations from RBL Bank, ICICI Bank and Axis Bank too.

In its currency review meeting in February, the Reserve Bank of India (RBI) has kept the economic growth rate 7.4 percent for the financial year 2019-20. The RBI has projected the growth rate to be 7.2 percent during the first half of the new financial year (April to September).

Yogesh Mehta of Motilal Oswal said, "We are fast growing economies and our growth rate is quite solid." After the elections, a better picture will be present. Only after the formation of a new government, the direction of the market will be decided. "

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